Market Hypothesis and analysis

• Type your answers and upload your word/pdf file to Blackboard before 6 PM on November 18, 2017
• In answering the Short Questions, elaborate your answers covering relevant discussions.
• Show your work/calculation for the Problems.
• Late submission will be penalized by 50 points.

Short Questions:

Don't use plagiarized sources. Get Your Custom Essay on
Market Hypothesis and analysis
Just from $13/Page
Order Essay

1. Differentiate among Capital Allocation Line (CAL), Capital Market Line (CML), and Security Market Line (SML).

2. Briefly discuss the three versions of the Efficient Market Hypothesis.

3. Differentiate between Fundamental Analysis and Technical Analysis. Use examples of each.

4. Differentiate between Active Portfolio Management and Passive Portfolio Management. Use examples of each these strategies.

5. Briefly describe the relationship between Market Interest Rate and Bond Price. Use an example elaborating the relationship.

6. Write a short note on ‘Bond Market’.

7. Differentiate between Intrinsic Value and Market Price of financial assets. How these two can assist in choosing our investment strategies?

8. Briefly discuss the features of Put Options and Call Options.

9. Briefly describe different types of Listed Options.

10. What are the prominent risk-adjusted performance measures for a portfolio? Briefly discuss.

Problems:

1. Louis Incorporated expects non-normal dividend growth over the next three years; that is a 10% growth rate in the first year, then 20%, and then 25% followed by growth of 5% thereafter. If the last dividend paid was $0.25 and the appropriate discount rate is 12%; what is the price of the stock today?

2. You have been hired as a consultant by Feludi Inc.’s CFO, who wants you to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 1.30. Based on the CAPM approach, what is the cost of common from retained earnings?

3. You have the choice between investing in a corporate bond or a municipal bond with a yield of 8%. If your marginal tax rate is 28%, what should be the yield on the corporate bond in order to be competitive?

4. Louis Bonds have 14 years to maturity, with a coupon rate of 8%, paid ANNUALLY; if the appropriate discount rate is 12% what is the CURRENT yield of Louis Bonds?

5. Frank sold 100 put options contracts to Claire on APPL with exercise price of $150 and premium of $12 per share. When the price of APPL is $170, will Frank exercise his options? If yes, calculate Frank’s profit. If not, calculate Claire’s profit.

Chegg Answers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with CheggAnswers

Quality Essays

At CheggAnswers.com, we boast of our quick turnaround that is facilitated by our experienced team of writers. We can handle both short and long deadlines, as per our clients’ requests. Quality work is the cornerstone of our service.

Top Writers

Our writers are qualified professionals who are well-versed with more than 80 subjects. We have achieved this milestone overtime because of our rigorous hiring process that filters professionals from average writers. We believe that exposing our customers to qualified writers is the starting point of delivering quality work.

Plagiarism-Free Papers

Our writers submit papers that are written from scratch to uphold the much-needed originality when submitting your papers. Our references are mainly sourced from reputable databases such as Emerald Insight, Ebsco, and ProQuest. All papers follow the conventional styles of referencing that include APA, MLA, Chicago, Harvard, and Vancouver.

24/7 Customer Support

The customer is king and as such, CheggAnswers.com has a committed support department that handles all concerns and clarifications from our clients. We encourage customers to contact us at any given time through our listed telephone, email, and text platforms.

Prompt Delivery & 100% Money Back Guarantee

Your work starts immediately after placing an order. Our writers are aware of our company policy that guarantees quality work to all our customers. For this reason, CheggAnswers strives to deliver assignments on time to avoid any delays that might compromise our relationship with clients.

Free Revisions

Although we are confident in our writers, you are entitled to free revisions whenever need arises. However, we highly disregard customers who misuse this privilege.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

We offer a wide range of services that are aligned with the customers’ needs and expectations. We have positioned ourselves strategically to become a one-stop-shop where customers can access all academic services under one roof.

Essays

Academic Writing

Our main service is academic paper writing, which is handled by a pool of experienced writers who uphold the expected standards of writing. Over the years, we have delivered quality work to our clients because of our commitment to promote quality over quantity.

Admissions

Admission Essays

Whether you are about to Join College or you are a continuing student, CheggAnswers is there to help. Our competent professionals will solve all your writing problems. Personalization is key to scoring highly and satisfying the admission board’s expectations. We will help you achieve your academic goals.

Reviews

Editing & Proofreading

Some of our clients prefer to write their essays and have a third-party like CheggAnswers proofread their work. We have a skilled team of editors who comb through your paper and make any amends to increase its overall appeal. For all your editing and proofreading needs, CheggAnswers is there to help.

Reviews

Revision Support

At CheggAnswers, we offer an extensive revision support that works tirelessly to ensure that customer needs and expectations are met. We work closely with writers upon a customer’s revision request to ensure that we keep our promise of delivering quality work to all our clients.